Microprocessor Market Continues Strong

Intel Corp. gained market share in the global microprocessor business during Q1, according to new research from iSuppli Corp. Intel had just under 80 percent of the market measured in revenue, up 1.2 percent from the previous quarter.But the company's market share was down 0.7 percent compared to one year ago.

Intel's chief rival, Advanced Micro Devices, gained about 13 percent of the global market in Q1, down 1.1 percent from the previous quarter but up 2.2 percent compared to a year ago. Combined, the two chip giants had about 93 percent of the total global revenue market. Matthew Wilkins, principal analyst for computer platforms, says AMD's product portfolio in PC microprocessors has noticeably improved during the last year, and customers are responding. Even so, it appears Intel is still comfortably ahead of AMD.

The good news for the channel is the gains in the microprocessor market underlie the strength of the global PC market, which grew 12.1 in the first quarter because of strong overseas sales and growing notebook demand. According to iSuppli, both Intel and AMD report their average selling price is holding stable, an indication that the earlier price war between Intel and AMD has ended.

(Note that I'll be taking a short summer break during the next few days. New blog entries will resume on July 14.)

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